2018 accounting assignment national 5 finalised marking ... · transaction is consequential...

2018 Accounting Assignment

National 5

Finalised Marking Instructions

© Scottish Qualifications Authority 2018

The information in this publication may be reproduced to support SQA qualifications only on a non-commercial basis. If it is reproduced, SQA should be clearly acknowledged as the source. If it is to be used for any other purpose, written permission must be obtained from [email protected]. Where the publication includes materials from sources other than SQA (secondary copyright), this material should only be reproduced for the purposes of examination or assessment. If it needs to be reproduced for any other purpose it is the centre’s responsibility to obtain the necessary copyright clearance. SQA’s NQ Assessment team may be able to direct you to the secondary sources. These marking instructions have been prepared by examination teams for use by SQA appointed markers when marking external course assessments. This publication must not be reproduced for commercial or trade purposes.

©

General marking principles for National 5 Accounting Assignment This information is provided to help you understand the general principles you must apply when marking candidate responses in this assignment. These principles must be read in conjunction with the detailed marking instructions, which identify the key features required in candidate responses. Marks for each candidate response must always be assigned in line with these general marking principles and the detailed marking instructions for this assessment. Marking should always be positive. This means that, for each candidate response, marks are accumulated for the demonstration of relevant skills, knowledge and understanding: they are not deducted from a maximum on the basis of errors or omissions. Candidates will be awarded marks for showing workings and demonstrating that accounting processes have been followed, even when incorrect figures are presented. Printouts

Candidates are clearly directed, within the instructions, as to the printing requirements. If the formula printout is missing, no formula marks can be awarded. If the value view is missing, markers should use the formula view printout to ascertain and award value view marks. Layouts

Layouts in the detailed marking instructions are provided for illustrative purposes only. Candidates should not be penalised for using appropriate alternative layouts. Consequential errors Consequential errors will be taken account of and candidates will receive credit for following the correct accounting processes and spreadsheet formula.

Formulae Printouts

Absolute cell references are not required.

Named cells are acceptable.

Where a formula is truncated, no mark each time.

If formulae marks are grouped and the candidate has not made an attempt at some component part – still award the formulae mark providing the formulae that have been attempted are correct. Formatting

Due to formatting, candidate answers may be rounded to 0 decimal places – Accept.

Extra Cells Added

Candidates may have inserted data in extra cells in order to help them construct formulae. This is acceptable providing the extra data is using cell references. If the extra data has not used cell references, then do not award formula marks EACH TIME. Markers should pay close attention as to how formulae are constructed if the candidate has inserted extra cells.

Detailed marking instructions Task 1

SELECTED LEDGER ACCOUNTS OF TREATS FROM THE TROSSACHS Marks

Date Details Dr Cr Bal

PURCHASES ACCOUNT

01-Feb Balance 4,200·00 4,200·00 (Dr) 0

05-Feb Fowlis Fruits 688·75 4,888·75 (Dr) (1)

SALES REVENUE ACCOUNT

01-Feb Balance 6,300·00 6,300·00 (Cr) 0

15-Feb Balgove Larder 120·00 6,420·00 (Cr) (1)

FOWLIS FRUITS ACCOUNT

01-Feb Balance 456·00 456·00 (Cr) 0

05-Feb Purchases and VAT 826·50 1,282·50 (Cr) (1)

VAT ACCOUNT

01-Feb Balance 346·00 346·00 (Cr) 0

05-Feb Fowlis Fruits 137·75 208·25 (Cr) (1)

12-Feb Bank (Cash Equivalents) 72·00 136·25 (Cr)

(2) (1 calc, 1 entry)

15-Feb Balgove Larder 24·00 160·25 (Cr) (1)

19-Feb Computers 4 U 130·00 30·25 (Cr) (1)

BANK (CASH EQUIVALENTS) ACCOUNT

01-Feb Balance 4,772·00 4,772·00 (Dr) 0

12-Feb Stationery and VAT 432·00 4,340·00 (Dr) (1)

27-Feb Balgove Larder 60·00 4,400·00 (Dr) (1)

STATIONERY ACCOUNT

01-Feb Balance 120·00 120·00 (Dr) 0

12-Feb Bank (Cash Equivalents) 360·00 480·00 (Dr) (1)

BALGOVE LARDER ACCOUNT

01-Feb Balance 56·00 56·00 (Dr) 0

15-Feb Sales Revenue and VAT 144·00 200·00 (Dr) (1)

27-Feb Bank 60·00 140·00 (Dr) (1)

Bad Debts 140·00 0·00 (1)

EQUIPMENT ACCCOUNT

01-Feb Balance 4,120·00 4,120·00 (Dr) 0

19-Feb Computers 4 U 650·00 4,770·00 (Dr) (1)

COMPUTERS 4 U ACCOUNT

19-Feb Equipment and VAT 780·00 780·00 (Cr) (1)

BAD DEBTS ACCOUNT

27-Feb Balgove Larder 140·00 140·00 (Dr) (1)

Task 1: Specific marking instructions

An award is based on the entire line being correct (date and nomenclature). Ignore

balance for pre-given ledger accounts. For Computers4U and Bad Debts account, the

balance is needed for the mark to be awarded.

Mark each transaction consequentially. This may mean a correct answer as per solution

is consequentially wrong. For example, for the transaction on 27 Feb, a candidate may

have:

Balgove Larder Acc - £140 Cr

Bad Debts Acc - £140 Cr This would get 0 marks

In this instance, even although the Balgove Larder Acc entry is correct as per solution,

it would be consequentially wrong as we would expect to see a double entry. If the

candidate had reversed the entry as follows, one mark would be awarded:

Balgove Larder Acc - £140 Dr (X)

Bad Debts Acc - £140 Cr (1) CE

NOTE: this applies to two entry transactions. Where VAT is involved, see scenario

examples.

It is STRONGLY ADVISED markers approach the question by marking transactions

sequentially in date order (ie mark the 3 entries for 5 Feb first, then mark the entries

for 12 Feb etc).

When marking a transaction, it is helpful to have a starting point, and then ask

yourself ‘What do I expect to see next?’ The following starting points in a transaction

are advised:

5 Feb – Start with entry in Purchases Acc (or Sales Acc if candidate has wrong

treatment). Look at VAT next. It should follow the Dr or Cr entry of the first figure.

12 Feb – Start with entry in Stationery Acc (or other if candidate has wrong treatment). Look at VAT next. It should follow the Dr or Cr entry of the first figure.

15 Feb – Start with entry in Sales Acc (or Purchases Acc if candidate has wrong treatment). Look at VAT next. It should follow the Dr or Cr entry of the first figure.

19 Feb – Start with entry in Equipment Acc (or other if candidate has wrong treatment). Look at VAT next. It should follow the Dr or Cr entry of the first figure.

27 Feb – Start with entries in Balgove Larder Acc.

Nomenclature

The first 2 times a candidate has a correct entry but incorrect date/nomenclature, across 2 different transactions, they will not gain the mark. Thereafter ignore incorrect date/nomenclature. Markers should indicate a no award due to incorrect nomenclature/date by writing an ‘N’ or ‘D’ beside the correct entry.

For example, if the 3 entries on 15 Feb have a date of 14 Feb, lose only 1 mark.

However, if there is an incorrect date/nomenclature in a separate transaction the 2nd

mark would be lost here.

Nomenclature is consequential on the transaction. Nomenclature is also consequential

on the account names used by the candidate (eg if candidate opens up a Discount Acc

instead of Bad Debts, the entry in the Discount Acc would not be awarded a mark but

using ‘Discount’ in the subsequent nomenclature would be consequential).

If only one side of the double entry entered, cannot penalise nomenclature.

If the entry is incorrect ignore date/nomenclature. Any incorrect date/nomenclature on a wrong entry does not count towards the candidate’s nomenclature allowance.

Extra Entries

If there are any extra entries as part of a transaction, apply the +/- rule. Taking the

transaction on 12 Feb as an example, if a candidate enters £360 Dr in the Stationery

Acc and also enters £320 Dr in the Purchases Acc (with the Vat and Bank Accounts

being correct), they would only be awarded 2 marks over the transaction instead of 3.

Markers should show this by putting the +/- sign at both the correct and wrong entries.

Candidates may enter Goods Value and Discount from Invoice. Accept providing

treatments are correct and ignore Discount Account.

Ignore any discount figures of £36·25 in any account.

Treats from the Trossachs Account

0 marks for entries in this account if candidate has created it. Remainder of

transaction is consequential (including nomenclature)

Fowlis Fruits Account

The Purchases and VAT entry on 5 Feb may be split into 2 separate entries – accept.

Also accept a wrong purchases figure and VAT, providing it is consequentially correct

(may see entry of £862·75 if candidate has used £725 as purchases figure).

VAT Account

Entry on 12 Feb is 1 mark for calculation and 1 mark for entry.

Stationery Account

Accept entry of £345·60 Dr for 1 mark if VAT has been calculated as £86·40 in the VAT

account (with corresponding entry of £432 in Bank Acc for 1 mark). Overall,

transaction gains 3/4.

Accept entry of £432 Dr for 1 mark if no VAT is calculated on the transaction (with

corresponding entry of £432 in Bank Acc for 1 mark). Overall, transaction gains 2/4.

Bank Account

Entry is consequential on candidate’s Stationery Acc entry.

If no VAT is applied by candidate, then nomenclature on 12 Feb is just Stationery. Also

accept Stationery & VAT.

The Stationery and VAT entry on 12 Feb may be split into 2 separate entries – accept.

Balgove Larder Account

If the entries on 27 Feb are combined for one entry of £200, the nomenclature MUST

say Bank and Bad Debts for 2 marks.

If there is only one entry on 27 Feb of £200 with the nomenclature ‘Bank’ or ‘Bad

Debts’ and the candidate has applied the bad debt in the ledgers correctly (£60 in the

Bank Acc and £140 in the Bad Debts Acc), then award 1 mark for the entry in Balgove

Larder Acc. This is outside of the Nomenclature allowance.

If there is only one entry on 27 Feb of £200 with the nomenclature ‘Bad Debt’ and no

indication of any monies paid to the Bank Acc – 0 marks in Balgove Larder Account and

1 consequential mark for £200 Dr entry in Bad Debts Acc.

If there is only one entry on 27 Feb of £200 with the nomenclature ‘Bank’ and no

indication of the bad debt anywhere in the accounts – 0 marks in Balgove Larder Acc

and 1 consequential mark for £200 Dr entry in Bank Acc.

Question 1 Alternative Solution

5 Feb

Dr Cr Purchases Acc Fowlis Fruits Acc Fowlis Fruits - £688·75 Purch & Vat - £826·50 VAT Acc Fowlis Fruits - £137·75

12 Feb

Dr Cr Stationery Bank Bank - £360 Stationery & VAT - £432 VAT Acc Bank - £72 (2)

15 Feb

Dr Cr Balgove Larder Sales Acc Sales & Vat - £144 Balgove Larder - £120 VAT Acc Balgove Larder - £24

19 Feb

Dr Cr Equipment Computers 4U Computers 4U - £650 Equipment & VAT - £780 VAT Acc Computers 4U - £130

27 Feb

Dr Cr Bank Acc Balgove Larder Balgove Larder - £60 Bank - £60 Bad Debt Acc Balgove Larder Balgove Larder - £140 Bad Debts - £140

Question 1 – Examples of Candidate Responses

For entry on 5 Feb (although same principles will apply to all entries where VAT involved)

Scenario 1 – Reversal of ALL entries Dr Cr Fowlis Fruits Acc Purchases Acc Purch & Vat - £826·50 (1) CE Fowlis Fruits - £688·75 (X)

VAT Acc Fowlis Fruits - £137·75 (1) CE 2 marks

Scenario 2 – All entries on Debit side Dr Cr Purchases Acc Fowlis Fruits - £688·75 (1)

VAT Acc Fowlis Fruits - £137·75 (1)

Fowlis Fruits Acc Purch & Vat - £826·50 (X) 2 marks

Scenario 3 – All entries on Credit side Dr Cr Purchases Acc Fowlis Fruits - £688·75 (X)

VAT Acc Fowlis Fruits - £137·75 (1)

Fowlis Fruits Acc Purch & Vat - £826·50 (X) 1 mark

Scenario 4 Dr Cr Purchases Acc Fowlis Fruits - £688·75 (X)

VAT Acc Fowlis Fruits Acc Fowlis Fruits - £137·75 (X) Purch & Vat - £826·50 (X) 0 marks

Scenario 5 Dr Cr Purchases Acc Fowlis Fruits - £688·75 (1)

Fowlis Fruits Acc VAT Acc Purch & Vat - £826·50 (X) Fowlis Fruits - £137·75 (X) 1 mark

If the candidate has put the initial entry into the Sales Account as a debit then award 0

marks for the whole transaction. No consequentiality will be considered for these

transactions. Consequentiality has a limit!

In this scenario, the only award given is for VAT. If the full amount goes to the Purchases Acc but put on Credit side, VAT can still gain award if it too is put on Credit side.

Scenario 6 Dr Cr Purchases Acc VAT Acc Fowlis Fruits - £688·75 (1) Fowlis Fruits - £137·75 (X)

Fowlis Fruits Acc Purch & Vat - £826·50 (1) 2 marks

Scenario 7 Dr Cr VAT Acc Purchases Acc Fowlis Fruits - £137·75 (X) Fowlis Fruits - £688·75 (X)

Fowlis Fruits Acc Purch & Vat - £826·50 (1) 1 mark

Scenario 8 - Treated as Sales not Purchases (and vice versa) Dr Cr Fowlis Fruits Acc Sales Acc Sales & Vat - £826·50 (1) CE Fowlis Fruits - £688·75 (X)

VAT Acc Fowlis Fruits - £137·75 (1) CE 2 marks

Scenario 9 – Full amount to Purchases Acc Dr Cr Purchases Acc Fowlis Fruits Acc Fowlis Fruits - £826·50 (X) Purch & Vat - £688·75 (X)

VAT Acc Fowlis Fruits - £137·75 (1) 1 mark

Task 2 – Value Printout

Receipts

Issues

Balance

Date Details Units (kg)

CPU (£)

Value (£)

Units (kg)

CPU (£)

Value (£)

Units (kg)

CPU (£) Value (£)

1 February

Opening Balance

100 1·58 158·00

0

5 February

Purchases from Supplier

600 1·60 960·00 100 1·58 158·00

600 1·60 960·00

1,118·00 (1) for whole Balance box

6 February

Issues to Job 560

400 1·60 640·00 100 1·58 158·00

200 1·60 320·00

478·00 (1) for whole Balance box

8 February

Issues to Job 561

200 1·60 320·00 50 1·58 79·00

50 1·58 79·00

(1) for whole Balance box

9 February


500 1·64 820·00 50 1·58 79·00

500 1·64 820·00


10 February

Issues to Job 562

450 1·64 738·00 50 1·58 79·00

50 1·64 82·00


(1) for all receipts correct

(4) 1 for each correct Issues row


If done as FIFO, lose all 4 marks in issues column. If started as FIFO and then candidate has moved on to LIFO – lose all 4 marks in issues column.

If 2 separate groups of inventory not shown in 5 Feb balance and then subsequent balances, lose award for balance on 5 Feb and lose the 4 issue marks. Remaining balances are consequential.

If Balance has 2 separate inventories, need to show a total value of both inventories. If total not shown, lose balance box award once. Thereafter treat as consequential.

Where 2 separate inventories and total value is shown but individual totals are not – accept. Eg – 5 Feb only has £1,118 in balance

CPU MUST be shown in each box to gain award. If not – lose award each time.

If Balance column done as running balance – mark balances box as per solution.

Don’t need issues on 8 February to be subtotalled.

Task 2 – Formula Printout

Receipts Issues Balance

Date Details Units (kg)

CPU (£) Value (£)

Units (kg)

CPU (£) Value (£)

Units (kg)

CPU (£) Value (£)

1 February

Opening Balance

100 1·58 =I7*J7

5 February


600 1·6 =C10*D10 100 1·58 =I10*J10

600 1·6 =I11*J11

=SUM(K10:K11)

6 February

Issues to Job 560

400 1·6 =F13*G13 100 1·58 =I13*J13

200 1·6 =I14*J14

=SUM(K13:K14)

8 February

Issues to Job 561

200 1·6 =F16*G16 50 1·58 =I16*J16

50 1·58 =F17*G17

9 February


500 1·64 =C19*D19 50 1·58 =I19*J19

500 1·64 =I20*J20

=SUM(K19:K20)

10 February

Issues to Job 562

450 1·64 =F22*G22 50 1·58 =I22*J22

50 1·64 =I23*J23

=SUM(K22:K23)

(1) (1) (1)

1 mark is awarded for formula in each of the Value columns The value in the balance column can be calculated in a variety of ways – award marks as long as a cell-referenced formula is used.

No need for formulae to be used to calculate Units and CPU figures.

Task 3 – Value Printout ESTIMATED DATA CASH BUDGET FOR TREATS FROM THE TROSSACHS JUNE AND JULY 2018

APRIL MAY JUNE JULY

Production units (boxes) 6,000 6,600 7,400 8,000 JUNE JULY

Purchase of oats (kg) 4,000 4,500 4,800 5,200 £ £

OPENING BALANCE 5,500·00 (1) 31,845·00

DATA £

Selling price 12·00 per box RECEIPTS

Labour 2·40 per box Cash sales 22,200·00 (1) 24,000·00 (1)

Materials (Oats) 1·44 per kg Credit sales 56,430·00 (2) 63,270·00 (1)

Other materials 1·80 per box 78,630·00 87,270·00

Variable overheads 1·10 per box

PAYMENTS

BANK LOAN REPAYMENTS Materials (Oats) 5,760·00 6,480·00 (1) for line

Monthly payment £300·00 Other materials 11,880·00 13,320·00 (1) for line

Monthly interest 15% Labour 17,760·00 19,200·00 (1) for line

Variable overheads 8,140·00 8,800·00 (1) for line

Fixed costs 6,000·00 6,000·00 (1) for line

Delivery van 2,400·00 (1) 9,600·00 (1)

Bank loan repayments 345·00 345·00 (1) for line

52,285·00 63,745·00

CLOSING BALANCE 31,845·00 55,370·00 (1)


Figures for Opening Balance and Material Price are consequential on candidate answer in previous tasks.

If no subtotals for either receipts or payments, lose closing balance award. (Opening balance may be added to receipts).

For both cash and credit sales, look at formulae to ascertain how answer was arrived at.

For Cash Sales o If 1 error, award 0 marks for June and 1 mark consequentially for July

If 2 errors, award 0 marks for June and 0 marks consequentially for July

For Credit Sales o If 1 error, award 1 mark for June and 1 mark consequentially for July

If 2 errors, award 0 marks for June and 1 mark consequentially for July If 3 errors, award 0 marks for June and 0 marks consequentially for July

In formula view, if the candidate used £6,000 in Bank Loan Repayment, accept formula mark as £6,000 cannot be cell referenced. If candidate typed 0·15 or 1·15 then do not award as 15% can be cell referenced.

Task 3 – Formula Printout

APRIL MAY JUNE JULY

Production units (boxes) 6000 6600 7400 8000 JUNE JULY

Purchase of Oats (kg) 4000 4500 4800 5200 £ £

OPENING BALANCE =Ledger!E35*1·25 F1 =H23

DATA £

Selling price 12 per box RECEIPTS

Labour 2·4 per box Cash sales =(D4*0·25)*B8 =(E4*0·25)*B8 F2

Materials (Oats) =Inventory!D10*0·9 per kg F1 Credit sales =(C4*0·75)*(B8*0·95) =(D4*0·75)*(B8*0·95) F3

Other materials 1·8 per box =SUM(H9:H10) =SUM(J9:J10)

Variable overheads 1·1 per box

PAYMENTS

BANK LOAN REPAYMENTS Materials (Oats) =B10*B5 =B10*C5

Monthly payment 300 Other materials =B11*C4 =B11*D4

Monthly interest 0·15 Labour =B9*D4 =B9*E4

Variable overheads =B12*D4 =B12*E4

Fixed costs 6000 6000

Delivery van =12000*20% =12000*80%

F5 - ALL OTHER FORMULAE Bank loan repayments =B15+(B15*B16) =B15+(B15*B16)

F4

=SUM(H14:H20) =SUM(J14:J20)

CLOSING BALANCE =H6+H11-H21 =J6+J11-J21

[END OF MARKING INSTRUCTIONS]

2018 accounting assignment national 5 finalised marking ... · transaction is consequential...

Documents